Sent: Tuesday, January 30, 2007 7:30 PM To: taxman at centa.com Subject: Binational couple Hi David, Although the issue of Binational couples has been touched on before on your list, I've read conflicting answers to the same basic situation, which is this: a U.S. citizen/resident marries a dual U.S./Canadian citizen. The American has a home in the U.S. (principal residence), the dual has a home in Canada (principal residence). In order to be allowed permanent access to the spouse's Canadian home (in case he ever decides to move to Canada sometime in the future), the American gets PR status in Canada, but does NOT change his residence from the U.S. to Canada (still owns U.S. home, U.S. job, U.S. health coverage...nothing in Canada). American only visits spouse's Canadian home on weekends. Canadian visits spouse's U.S. home several days thru the week (thus keeping American's PR status alive). So, the question is this: does the American have any tax obligation to Canada just by marrying a Canadian and visiting for two or three days a week? Thanks, ------------------------------------------- david ingram replies: In the example given, The American is NOT a taxable resident of Canada. Article IV(2)(d) of the tax treaty ultimately defaults to citizenship. To enforce the issue, she should make sure that she spends a couple of weekends in the US as well and they should take a nice American holiday. If her residence is in Ontario, she only has to be in Ontario i.e. sleep in Ontario 153 nights to keep her Canadian medical alive. If she is living in any other province, she has to sleep in her home province more than 183 nights to keep the provincial medical alive. The reason I make the point about "sleep" is that I have known literally dozens of people who have had their BC Medical cancelled because they sleep in their US home at night even though they are physically at work in BC 220 days a year and here most weekends for shopping, theatre, visiting, etc. I am referring in particular to residents of Point Roberts who only sleep there but spend their working time and most shopping time in Canada. Hubby, in the case described, should be sure that he does NOT possess: Canadian Driver's licence, Canadian Resident Bank Account Canadian video store card Canadian Golf club membership Canadian fitness gym membership Canadian registered car. He can NOT drive his wife's car in the USA unless she or another Canadian resident is in it AND She can NOT drive his US car in Canada unless he or another US resident is in it. The above rules about cars can be solved by paying the duty to import his car to Canada (does NOT need to be registered in Canada) and the duty to import her car to the US and again, her car does NOT need to be registered in the US. It is the best of both worlds because you get to file a joint US return and do not pay tax in Canada. Your wife is an American and her income goes on the US return which she has to file anyway but you get to claim a foreign tax credit for the tax paid to Canada. --------------- David Ingram's US / Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists My Home office is at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://www.david-ingram.com/> Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obta in formal advice from a competent and appropriately qualified legal practitioner or tax specialist for expert help, assistance, preparation, or consultation in connection with personal or business affairs such as at www.centa.com <http://www.centa.com> . If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" David Ingram gives expert income tax & immigration help to non-resident Americans & Canadians from New York to California to Mexico family, estate, income trust trusts Cross border, dual citizen - out of country investments are all handled with competence & authority. This from "ask an income trusts tax and immigration expert" from www.centa.com <http://www.centa.com/> or www.jurock.com <http://www.jurock.com/> or www.featureweb.com <http://www.featureweb.com/> . 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